28
QuizMultiple Choice

N/A — Exam

Question 28 • Personal Finance

Why do higher-risk investments often have higher returns?

Answer
A
They are guaranteed
B
They are stable
C
They involve more uncertainty
D
They avoid taxes

Explanation

Higher-risk investments have less predictable outcomes, so investors may lose money or earn less than expected. To persuade investors to accept that uncertainty, these investments often offer the possibility of higher returns. The correct choice is “They involve more uncertainty.”

AI-written and checked against the verified answer.

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